The 8th Power Development Plan (PDP8) sets the goal of promoting renewable energy, aiming to raise the proportion of renewable energy sources to 67.5%-71.5% by 2050. (Photo: congthuong.vn)
There is ample room for Vietnam's power industry to develop in the future as the demand for electricity grows, a trend that is forecast to continue for the next decade, according to industry insiders.
According to Phu Hung Securities JSC (PHS), Vietnam has seen strong economic growth for the past 20 years, with annual average GDP expansion of around 13%.
Energy has been a vital factor in ensuring sustained economic growth during the period, PHS said.
According to forecasts from the World Bank, the Asian Development Bank (ADB), and Fitch Solutions, electricity consumption demand in Vietnam is surging, closely paralleling economic growth. Demand is expected to continue rising swiftly as the country's economy regains growth momentum of 6 - 8% per year in the coming years.
Furthermore, the robust influx of foreign direct investment (FDI) resulting from the supply chain shift is also a key factor supporting the development of energy sector in the country.
Analysts indicate that the FDI scale is closely tied to the expansion of Vietnam's economy from past to present, and the trend of high FDI growth in the future is certain to benefit the electricity sector as a significant portion of registered FDI capital (nearly 60% of the accumulated capital) is associated with the manufacturing and processing industries.
Over the past two decades, Vietnam's electricity output grew by over 11% per year, meeting a steady increase in electricity consumption. Since 2019, the proportion of renewable energy sources (solar, wind, and hydroelectric power) has rapidly increased, accounting for over 48% of the total power output in 2022.
Through incentive policies, particularly regarding pricing, the Vietnamese Government has successfully elevated the country to a leading position in the region in terms of the proportion of clean energy, surpassing many nations that were already strong players in this field, such as China, Australia, and Thailand.
Experts from PHS said that solar and wind power will undoubtedly be Vietnam's top priorities to meet the rapidly increasing electricity consumption demand, and achieve the zero-carbon goal in the upcoming decades.
The 8th Power Development Plan (PDP8) sets the goal of promoting renewable energy, aiming to raise the proportion of renewable energy sources to 67.5%-71.5% by 2050.